As the world is battling the COVID-19 pandemic, the tech industry has its own storm to worry about: chip shortages. Chips are used in everything from vehicles and washing machines to audiovisual equipment. Product lead delays are beginning to hamper university and corporate audiovisual installations as factories are shut down and ports are at a standstill due to Covid.
The audiovisual sector is being impacted by a shortage of specific types of integrated circuit chips. Due to other customers’ demands on the same supply chain, a considerable increase in wait times for certain ICs has been observed. This has resulted in an increased need for spare inventory, which is becoming increasingly tough to replenish. Subsequently, this has resulted in issues and probable actions for both organizations and the employees of our team who serve you.
Before learning what is the prevalent global chip shortage, one must understand what a chip shortage implies.
The hundreds of signal processors, switchers, adapters, and converters that make all the sources work with the screens – is what gives an AV system its magic. Some are built into monitors, projectors, speakers, lighting systems, and LEDs, while others are on the outside.
When you add together all the “black boxes” that connect visual, audio, control, networking, and single management in a typical system, there are frequently dozens, if not hundreds of them. An almost single one of these little boxes or converters is powered by a programmable chip of some sort.
With this information, it becomes easy to appreciate the fact that producing AV products without these chips is impossible.
The Cause of this shortage in the AV industry:
COVID-19 has shut down manufacturing factories and ports, resulting in the current chip shortage. Chips can no longer be produced when factories and ports are closed.
There has been a spiked increase in demand for audiovisual equipment containing integrated circuits (ICs), such as smart TVs, digital signage players, A/V receivers, and switches. With ports restricted due to COVID-19, demand for audiovisual items is increasing, outpacing supply on the market at this time, causing inventory shortages.
It is more critical than ever for firms to prepare for these difficulties.
The rise in prices in AV Industry:
With this global shortage in chips, as one can assume, the production of AV products has gone down significantly. Furthermore, the factories were shut over all industries. This implies in addition to the production of chips; the production of AV products could not be done because of COVID-19. These 2 major reasons resulted in a shortage of supply of AV products. Basic laws of economics curate, with the shortage of demand, there is a rise in price. So, here it was! Rising prices in the AV market for all kinds of products.
Experts predict this shortage could last until H1 2023 and the prices could keep rising till the shortage of these chips ends. So, the entire AV industry is dependent on these chips. And every day the AV industry is reminded of how they are still handling the impact of COVID-19 and do not know when it will last.